Data and analytics
Risk Based Segmentation
Segment customer by credit risk
Modelling, insight and implementation to group customers based on their risk profile. Our Risk Based Segmentation capability incorporates client data, Credit data and any additional Sagacity data to give an output of customer characteristics based on their risk profile. These risk profiles inform each customer lifestage, enabling organisations to better understand risk and better manage bad debt.
Implementing Risk Based Segmentation
In many cases, bad debt drives risk based segmentation needs. Organisations see that some customer journeys result in bad debt and that whilst retrospective action is required, it is not as effective as proactively segmenting based on risk from the beginning of every new product or offering and/or at the point of customer acquisition. New customers can be higher risk and with characteristics changing frequently, segmenting based on risk profile is a necessity, as is the need for in-life segmentation refreshes.
Proven capability in one package
We’ve successfully implemented Risk Based Segmentation for both blue chip and challenger brands across Water, Energy and Telecoms, with a combination of expertise delivered in one package. Not only do we deliver data and analytics, but we also ensure full Credit Risk policies and processes are in place and use our Consulting expertise to implement these across various operations in your business. We can also help you structure your organisation with target operating models and agent training.
Credit Risk
Operations
Risk Based Segmentation at every life stage
Our tailorable scorecards and cyclical models combined with our data analytics ensure you recognise your customers based on their risk profile, enabling you to understand the impacts on bad debt. As customers move across your business, our data refresh delivers up to date insights capturing customers’ changing characteristics. A customer who started off as low risk could become high risk overnight and vice versa, a high risk customer could become medium risk – all driven by changing characteristics and attributes. We help you to know your customers, from onboarding all the way through to end of life, helping you to treat each customer appropriately based on their risk.
Benefits of Risk Based Segmentation
Reduces risk and increases understanding of bad debt
Ensures Credit Risk is proactively managed
Enables tailored treatment of customers based on their attributes